DeFi market mechanism developer Gnosis is launching Gnosis Auction, a tool intended to solve initial price volatility for new ERC-20 tokens.
Gnosis Auction combines batch auctions with limit orders. Projects launching new tokens will be able to use Gnosis Auction to set up batch auctions, wherein founders set the lowest price they’re willing to sell their tokens for, and bidders set a maximum price. When the auction ends and the price settles, any bidders within range will have their sales cleared for the same price.
Using this method, Gnosis aims to eliminate frontrunning and “gas wars” from new ICO launches.